This project proposes to develop and test the effectiveness of a treatment program for socially handicapped children. It is hypothesized that constructive group work, within a failure-proof environment, emphasizing cooperative interaction to attain a product satisfactory to the group, should facilitate resocializing experiences for the socially handicapped child. The effectiveness of the intervention will be examined with homogeneously composed groups of socially handicapped students and others heterogeneously composed of socially handicapped and competent students. The hypothesis is that inclusion of socially competent students will provide more satisfactory models for learning, motivate more positive behaviors within the group, and through associations outside the group, aid the students to function more effectively outside the treatment group than those homogeneously grouped. The effects of the treatment and the grouping conditions will be assessed in terms of four domains: type and quality of intra-group interactions, type and quality of extra-group (i.e., classroom) interactions, classroom social status as perceived by self, peers, and teacher, and academic achievement. Follow up measures in the three later domains will be collected for up to two years following cessation of the treatment to assess the durability of any changes observed immediately after the group meetings are terminated.